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A $6600 loan at 11.25% compounded monthly is to be repaid by three equal payments due...

A $6600 loan at 11.25% compounded monthly is to be repaid by three equal payments due 3，6，and 12 months after the date of the loan. Calculate the size of each payment.
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Answer #1
Annual rate of interest 11.25%
Monthly rate of interest 0.94%
Let payment be x:
Months Cashflows PVF @ 0.9375% Present value
1 0 0.990712 0
2 0 0.98151 0
3 x 0.972394 0.972394x
4 0 0.963363 0
5 0 0.954415 0
6 x 0.945551 0.945551x
7 0 0.936768 0
8 0 0.928068 0
9 0 0.919448 0
10 0 0.910908 0
11 0 0.902448 0
12 x 0.894066 0.894066x
Present value of cash flows 2.812011x
The above present value shall be equal to loan mount
6600 = 2.812011 x
x = 2347.075
Equal payments be $ 2347.075
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